00                            HOUSE BILL NO. 475                                                                          
01 "An Act describing contributions to the health reimbursement arrangement plan for                                       
02 certain teachers and public employees; clarifying eligibility for membership in that                                    
03 health reimbursement arrangement plan; relating to the 'administrator' of the Public                                    
04 Employees' Retirement System of Alaska; and providing for an effective date."                                           
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. AS 39.30.370 is amended to read:                                                                      
07            Sec. 39.30.370. Contributions by employers. For each member of the plan,                                   
08       an employer shall contribute to the teachers' and public employees' retiree health                                
09       reimbursement arrangement plan trust fund an amount equal to three percent of the                                 
10       annual average compensation of all plan members [EMPLOYER'S AVERAGE                                           
11       ANNUAL EMPLOYEE COMPENSATION]. The administrator shall maintain a                                                 
12       record for each member to account for employer contributions on behalf of that                                    
13       member. The board shall establish by regulation the rate of interest to be applied                                
14       annually to the amount in a member's individual account.                                                          

01    * Sec. 2. AS 39.30.390 is amended to read:                                                                         
02            Sec. 39.30.390. Eligibility and reimbursement. Persons who meet the                                        
03       eligibility requirements of AS 14.25.470 or [AND] AS 39.35.870 are eligible for                               
04       reimbursements from the individual account established for a member under the plan,                               
05       except members do not have to retire directly from the system. A person who is the                                
06       dependent child of an eligible member is eligible for reimbursements if the eligible                              
07       member and surviving spouse have both died so long as the person meets the                                        
08       definition of dependent child.                                                                                    
09    * Sec. 3. AS 39.35.680(3) is amended to read:                                                                      
10                 (3)  "administrator" means [THE PERSON APPOINTED BY] the                                                
11       commissioner of administration or the commissioner's designee appointed under                                 
12       AS 39.35.003 [AS 39.35.050];                                                                                  
13    * Sec. 4. AS 39.35.050 is repealed.                                                                                
14    * Sec. 5. This Act takes effect July 1, 2006.